Prepare to Sell Your Business in Just Five Steps
No one ever said selling a business was easy, or quick, but we’re here to help get you organized and ready for the process with the following tips. Sure, there may be hiccups along the way, but being prepared for whatever may come up will limit the time you are tripped up and back on track to a successful sale.
1. Allow Plenty of Prep Time
With so much work to do in order to get your business ready for sale, you’ll want to start a year or two in advance. The preparation work you put in will not only make the selling process easier, but it will also make the transition that much smoother for the buyer, and the business running successfully.
2. Hire a Broker
The most important move you should make once you decide to sell your business is to hire a qualified business broker (link to broker article). A broker is the one who will list your business for sale and represent you during the entire process, all the way up until the deal is signed. Since you will be spending so much time with your broker, talk to a few of them and make sure it is someone you are comfortable with and can trust.
3. Gather Financials
It’s imperative to have your financial statements and tax returns dating back about four years to go over with an accountant. Also, create a list of everything that’s being sold with the business (equipment, property, etc.). Gather all relevant paperwork, including lease and operating manual, and make copies of all documents. Your broker can help you put everything together in a sales packet for potential buyers.
4. Improve Aesthetics
Just like in selling a house, you want everything to look its best. Throw on fresh coat of paint, clean carpets or floors and make any needed repairs. The more you take care of in advance will save you time on the back end when things are a little more hectic. Make a checklist of everything that needs to be done and take it one at a time.
5. Prep Your Team
Once you inform your team, including reasons why you are selling and answering any questions they may have, get them up to speed on your strategy. Take necessary steps to make sure the business can run smoothly in your absence. Potential buyers will be scared off by a business that is totally reliant on its owner to survive. Train your best employee(s) up and scale back your role in the business.